Canada based utility company Liberty Utilities has agreed to acquire New York American Water Company from the US-based public utility company American Water Works for $608m.

Headquartered in Merrick, New York, the New York American Water is a regulated water and wastewater utility that serves more than 125,000 customers across seven counties in south-eastern New York.

Its operations include around 2,043.8km of water mains and distribution lines and 98% of customers in Nassau County on Long Island.

Subject to regulatory approval from the New York Public Service Commission and review and clearance under U.S. antitrust laws, the acquisition is expected to close in the latter half of 2020.

Algonquin CEO Ian Robertson said: “We are committed to partnering with our regulator and other state officials to support the affordability of water services, including reducing the burden of local taxes on New York American Water’s customers, which can account for more than half of their monthly bills.”

American Water president and CEO Susan Story said: “We are committed to working together to ensure that the transition is unnoticeable to our customers and that safe and reliable water service continues throughout the transition and beyond.”

CIBC Capital Markets served as financial advisor to Liberty/Algonquin on the transaction, while Husch Blackwell LLP acted as legal counsel.

A subsidiary of utility company Algonquin Power & Utilities, the Liberty Utilities owns and operates regulated water, wastewater, natural gas, and electric utilities.

Liberty Utilities completed acquisition of Enbridge St. Lawrence Gas earlier this month

Earlier this month, Liberty Utilities completed its acquisition of Enbridge St. Lawrence Gas from Enbridge Gas, a subsidiary of Enbridge.

Enbridge St. Lawrence Gas is a regulated utility that delivers natural gas to over 16,000 customers in 23 communities across northern New York State, and operates approximately 688 miles (1,107.2km) of natural gas distribution pipeline.

Algonquin is a diversified international generation, transmission and distribution utility with nearly $11bn of total assets. Through its two business groups, the company provides natural gas, water, and electricity generation, transmission and distribution utility services to over 800,000 connections in the US and Canada.